Indian, Taiwanese insurers among top gainers in market cap in Q2

Major Indian and Taiwanese insurers posted some of the biggest gains in market capitalization in Asia-Pacific in the three months ended June 30, according to data compiled by S&P Global Market Intelligence.

Expectations of post-pandemic recovery in life and general insurance had driven the share prices of Indian insurers higher in the second quarter. Among the 20 most valuable insurance companies in Asia-Pacific, ICICI Prudential Life Insurance Co. Ltd. had the biggest gain in market cap, up 37.7% quarter over quarter. The Indian life insurer broke into the region's top 20 list with a market cap of $11.84 billion as of June 30.

SBI Life Insurance Co. Ltd. also moved up two spots on the list as its market cap increased 14.4% from the previous quarter, while Bajaj Finserv Ltd. logged a 25.2% quarterly rise in market cap to $25.92 billion.

Meanwhile, HDFC Life Insurance Co. Ltd. logged a 1.3% quarterly decline, but kept the 12th spot on the list with a market cap of $18.67 billion.

Data and analytics company GlobalData said July 1 that gross written premium of India's life insurance industry is poised to grow to 8 trillion rupees in 2024 from 5.7 trillion rupees in 2019. The country's life insurance industry is expected to rise at a compound annual growth rate of 7% over the same period, driven by "favorable" demographic factors and economic recovery expected in the second half of 2021.

Manisha Varma, insurance analyst at GlobalData, said: "High number of COVID-19 related deaths in the last one year has increased awareness for life insurance in India. Easing of lockdown restrictions and increased adoption of digital distribution will further support the growth."

India's general insurance industry is also expected to increase by 7% to 9% in terms of gross direct premium income in the fiscal year ending March 31, 2022, helped by growth from the health and motor segments, India Brand Equity Foundation said in a June 21 research report.

Taiwan's Fubon Financial Holding Co. Ltd. marked the second-highest quarter-over-quarter gain of 30.1% with a market cap of $27.09 billion, while Cathay Financial Holding Co. Ltd.'s market cap gained 12.4% to $25.43 billion.

QBE Insurance Group Ltd., the only Australian insurer on the list, sat on the 19th spot with a market cap of $11.93 billion, which was up 12.2% from the previous quarter.

The first six spots remain unchanged from the previous quarter. Ping An Insurance (Group) Co. of China Ltd. maintained its position as the region's largest insurer with a market cap of $179.99 billion despite a 17.5% decline from the prior quarter.

China Pacific Insurance (Group) Co. Ltd. recorded the biggest decline of 23% in the quarter, but retained its fourth spot with a market cap of $39.46 billion.

As of July 5, US$1 was equivalent to 74.27 Indian rupees.